Lodging Forecast and Car Rental

Hotels

Demand May Be Up, But Hotel Rates Stay Low
Hotels occupancy rates are improving, according to PKF Hospitality Research,
which says rates will increase 3.4 percent this year. Despite the increase,
PKF expects average daily room rates to drop 1.6 percent—on average, you’ll
be spending less on your rooms.

When the hotel business emerges from a recession, price increases lag growth
in demand, according to PKF. However, PricewatershouseCoopers projects that
room rates will start to increase in 2011, after two years of declines. (Source:
PKF Hotel Horizons, PCW Lodging Forecast).

Car Rental

Hertz, Avis Continue Vying to Acquire Dollar Thrifty
Hertz and Avis, who are vying with each other to buy Dollar Thrifty, are both
seeking antitrust approval for their proposed deals. Avis said that acquiring
Dollar Thrifty would help it compete more effectively against Enterprise, the
biggest player in the industry.

Hertz saying that it should face fewer hurdles than rival Avis, because Avis’
low-cost brand, Budget Rent A Car, competes directly with Dollar Thrifty. Hertz
has also filed papers with the Securities and Exchange Commission on the matter.
(Source: Hertz and Avis).

Avis Promotes Its EPA Certified Green Fleet
Avis said that its 2010 line-up is 62 percent SmartWay Certified, that is, they
meet U.S. Environmental Protection Agency (EPA) environmental standards for
air pollution and green house gas emission.